5 things to know before investing in cryptocurrencies

5 things to know before investing in cryptocurrencies

By Roberto D. | CryptoFarm | 1 Jul 2020


Before investing in crypto, there are 5 things you need to know (and do) to not lose your funds. Unlike Fiat currencies (read: euros, dollars, pounds, etc.) if your cryptocurrencies are stolen there is no one to ask for help, but let's go in order.

The crypto world is, in a sense, a real far west. So what to do to be sure?


1) Knowledge.

Read articles, follow competent people and ALWAYS deepen everything related to blockchain, cryptocurrencies and everything else, as it is essential to understand your actions. Forget the possible profit: It is tempting, it attracts, but it is only what is seen on the surface. Dig into the history of the currency you intend to buy to understand what the meaning of value and exchange is, understand why that currency should be purchased or simply avoided. In short, the money is yours, just as you would not give it to someone who says "with $ 5 you will make $ 50" do not believe everything you read, make your assessments and be aware.

2) Consciousness.

"Don't invest more than you can afford to lose." Invest a sum that in case it is lost would not throw you in the middle of a road. Meditate and stay firm on an initial figure evaluating other forms of investment and accumulation plans. The crypto world allows you to earn in many ways even without investment (at the end of the article I always leave links of proven sites, if you are interested you are free to comb through them).

3) Check.

A website must be totally secure. So be sure to invest on the official website of the exchange or wallet you are using / downloading. Always double check the url address, reading reviews and experiences. If you are unsure, don't continue. Beware of the so-called "scams", scams are scams. In general I would say that "if it sounds too good, it is probably a scam": NOBODY gives you nothing, or rather yes, but in small amounts. Stay away from fraudulent sites of people without a minimum of dignity or scruples: you could often happen in "bitcoin generator" which are the most banal of scams, often they recite sentences like "send 0.05 BTC today and we will send 5 BTC", please DO NOT fall for it, be careful.

4) ‘’ Not your key, not your crypto ’’

When you have chosen a secure exchange site to convert your money into cryptocurrencies, those cryptocurrencies will NOT be yours. They are your Euros in crypto value and vice versa. Having crypto means having private keys well guarded. Basically you are "the only custodian of the keys", write down every key that is provided to you on a sheet and put it in the safe, never give those credentials to anyone, for any reason. Whoever owns the keys, owns the cryptocurrencies in them, and they are yours and nobody else's.

5) Paper, pen and coldwallet.

Last step, keep your cryptocurrency private keys in a crypto wallet or on paper. Once your Euros are exchanged in crypto, you can send them from the exchange to your wallet for safekeeping. There are several wallets and they are divided into online, "cold wallets" (similar to USB sticks, but they "cryptocurrencies" physically) etc. I wrote a guide about the safest wallets (if you are interested, you can read HERE)

 

I would like to dedicate this short guide to those who want to take their first steps in this world, to the curious and those who see a project around this ecosystem.

It's all young, revolutionary, full of enthusiasm and ideas. Read all these points, read, make your assessments and decide, if it didn't bore you but encouraged you to enter this world, enter it.

Obviously if you want you can also deepen on my blog here on publish, you just have to scroll to find many articles on the most disparate topics: from security, to how to earn something for free, to exchanges etc. You are also free to completely ignore everything and look elsewhere if you prefer, however I would be very pleased to know that what I have written serves someone.

I wish the best to all of you who have read this "guide" I hope it has been useful and with extreme humility I tell you that I have been in this "world" for three years and I have made my mistakes and my right investments and now I am lucky enough to have made a minimum profit. In light of this I repeat, with extreme humility, if you have doubts do not hesitate to ask in the comments of this article I will be very happy to help you as I can (even pointing out other people's articles, I do not do it just for the money, I really believe in this world ).

And that was all, if you got here thanks a lot, from Italy and all and good day, see you next time!

 

 


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Roberto D.
Roberto D.

Born in Italy, I live in Italy, passionate about cryptocurrencies since I discovered ethereum in 2015


CryptoFarm
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